Oaktree Capital Group LLC agreed to sell packaging company Tekni-Plex Inc. to private-equity firm American Securities LLC in a transaction valued at more than $700 million, according to a person with knowledge of the deal.
The value of the deal, which hasn’t been completed, may be as much as $775 million including debt, said the person, who requested anonymity because financial terms weren’t disclosed. The acquisition is expected to close by year-end, according to a statement today from the companies.
Oaktree, based in Los Angeles, and buyout firm Avenue Capital Group LLC acquired 80 percent of King of Prussia, Pennsylvania-based Tekni-Plex in a 2008 restructuring. The sale to American Securities follows Oaktree’s agreement in July to sell Chesapeake Ltd., a U.K. packaging company, to Carlyle Group LP.
“We have had a very strong partnership with the management of Tekni-Plex and are grateful for the commitment the team has made in transforming and positioning the company for growth,” Aaron Bendikson, an Oaktree managing director, said in an e-mailed statement today.
American Securities, based in New York, oversees $10 billion in assets under management. The firm, which is using money from its sixth fund, previously invested in companies including El Pollo Loco Inc. and Oreck Corp., and its current holdings include Metaldyne Inc. and Potbelly Sandwich Works, according to its website.
Tekni-Plex, which has 25 manufacturing sites in nine countries, was advised by Goldman Sachs Group Inc. and Paul Weiss Rifkind Wharton & Garrison LLP, according to the statement. American Securities received advice from Houlihan Lokey, BMO Capital Markets Corp. and Weil Gotshal & Manges LLP.